Inflation Preview: What The White House, Federal Reserve Are Expecting In June CPI Report

As we head into hump day, the U.S. Bureau Of Labor Statistics will be reporting the consumer price index for June at 8:30 a.m. EDT on July 13.

June CPI Preview: Economists surveyed by Bloomberg reported that they expect consumer prices in June to rise 8.8% from a year ago, adding that this would set inflation to a 40-year-high. In May, the consumer price index increased 1%, while the overall index for May increased to 8.6% over the past twelve months.

As food and energy have been the primary drivers of inflation, there are still concerns over further supply chain disruptions and geopolitical tensions between Russia and the West.

According to Bloomberg, June could very well be the third month in the past four that received a consumer price index increase of at least 1%.

What The White House Expects: When White House Press Secretary Karine Jean-Pierre was asked about June inflation on Monday, she mentioned that the report was “backward-looking.”

With crude oil prices falling over the past three weeks, Americans have seen less pressure at the pump as the national average gas price has fallen to $4.655 a gallon, according to AAA.

Although the White House is reporting that June inflation is not forward-looking, the Biden administration still expecting the consumer price index for June to remain at frothy levels, as reported by Bloomberg.

Related Link: Exclusive: Inflation Rate Now Over 10% According To Truflation: Plus Interviews With Founders Of Apifiny And Truflation

Interest Rate Policy: JPMorgan Chase & Co JPM chief U.S. economist Mike Feroli mentioned in an interview with CNBC on June 29, that if June CPI remains hot, then a 75bps move is still on the table.

With the upcoming Fed meeting scheduled for July 26 through July 27, the consumer price index will be a vital indicator for the Federal Reserve's decision on potentially raising the benchmark rate by 75bps.

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